Bankruptcy Attorney Guilty of Embezzlement Furloughed From Prison Am...

The Bureau of Prisons (BOP) furloughed a former bankruptcy lawyer serving a 63 month sentence following a guilty plea to several bankruptcy crimes.  Peter Ressler, 72, pled guilty in 2017 to wire fraud (18 U.S.C. 1343), embezzlement from a bankruptcy estate (18 U.S.C. 154), and bankruptcy fraud (18 U.S.C. 157). 

According to the government, Ressler defrauded a large number of his bankruptcy clients of approximately $3.4 million.  According to this press release, Ressler misappropriated funds on deposit from his chapter 11 and chapter 13 bankruptcy clients to his own personal use, including to pay living expenses and the costs associated with his Connecticut law practice.  In some instances, Ressler misappropriated to his own use funds received from clients in purported non-bankruptcy "workouts" rather than paying settlements with creditors. A portion of the embezzled funds were also used to make payments associated with other clients and estates from which monies had improperly been taken.  Ressler filed made false accounts and filed false operating reports in some cases to cover up the offenses.

While Ressler's motion for compassionate release was pending before U.S. District Judge Alfred Covello, BOP exercised it's authority to furlough Ressler together with several other inmates among concern for their safety amid the corona virus pandemic.  Ressler was released to home confinement for at least 30 days on May 4. The BOP could decide to permit Ressler to complete his sentence in home confinement.  He has served approximately 24 months in prison.  Apart from COVID-19 concerns, BOP could consider Ressler eligible for release to home confinement in 18 months if it determines he is qualified for the elderly offender early release program.